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Fast Start in Project Management

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Fast Start® in Project ManagementFSIPM_V7_0

Table of Contents

Module 1 Introduction ........................................................................................................................... 1

Workshop Logistics .................................................................................................................................3

Workshop Materials .................................................................................................................................4

How to Get the Most Out of This Workshop ...........................................................................................5

Workshop Objectives ...............................................................................................................................6

Workshop Contents .................................................................................................................................7

PMBOK® Guide ......................................................................................................................................8

Module 2 Project Management Concepts .............................................................................................. 9

Project Management in the Enterprise Environment ............................................................................10

Programs ................................................................................................................................................11

Projects and Sub-Projects ......................................................................................................................12

Portfolios ...............................................................................................................................................13

Project Management Offices (PMOs)....................................................................................................14

So What is Project Management?..........................................................................................................15

Project Management Activities .............................................................................................................17

The Project Management Process .........................................................................................................18

Project Phases ........................................................................................................................................20

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Project Life Cycle (PLC) .......................................................................................................................21

Rolling Wave Planning ..........................................................................................................................23

What Defines a Successful Project? ......................................................................................................24

The Project Management Triangle ........................................................................................................25

Critical Success Factors .........................................................................................................................26

The Project Manager’s Skills and Knowledge ......................................................................................27

The Project Manager’s Role ..................................................................................................................28

The Project Participants .........................................................................................................................29

The Project Sponsor ..............................................................................................................................30

The Stakeholders ...................................................................................................................................31

The Project Team ...................................................................................................................................32

The Project Environment .......................................................................................................................33

Culture and Style ............................................................................................................................33

Structure ..........................................................................................................................................34

Project Management System ..........................................................................................................34

Key Learning Points ..............................................................................................................................35

Module 3 The People Side of Project Management ............................................................................ 37

The People Side .....................................................................................................................................38

The Social Style Model™ .....................................................................................................................39

Behavioral Dimensions .........................................................................................................................40

Assertiveness .........................................................................................................................................41

Responsiveness ......................................................................................................................................42

The Social Style .....................................................................................................................................43

Social Style Characteristics ...................................................................................................................44

Social Style Strengths and Challenges ..................................................................................................45

Social Style and Backup Behavior ........................................................................................................46

Versatility ...............................................................................................................................................47

Working with Others .............................................................................................................................48

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Analytical Social Style ....................................................................................................................48

Driving Social Style ........................................................................................................................48

Expressive Social Style ...................................................................................................................49

Amiable Social Style ......................................................................................................................49

Building on Your Strengths ...................................................................................................................50

Classification Ethics ..............................................................................................................................51

The Communication Process .................................................................................................................52

Virtual Communications ........................................................................................................................54

Key Learning Points .............................................................................................................................55

Module 4 Initiating the Project ............................................................................................................ 57

Project Initiation ....................................................................................................................................59

Defining Need ........................................................................................................................................60

Defining Feasibility ...............................................................................................................................61

Demonstrating Need and Feasibility .....................................................................................................62

Project Stakeholder Management ..........................................................................................................63

Identify Stakeholders ......................................................................................................................63

Stakeholder Analysis .......................................................................................................................64

Plan Stakeholder Engagement ........................................................................................................64

Manage Stakeholder Engagement ..................................................................................................65

Monitor Stakeholder Engagement ..................................................................................................65

Project Charter .......................................................................................................................................66

Project Description ................................................................................................................................67

Project Purpose ......................................................................................................................................68

Project Objectives ..................................................................................................................................69

Project Requirements ............................................................................................................................71

Triangle Flexibility ................................................................................................................................72


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Table of Contents


Module 5 Planning the Project ............................................................................................................ 75

Why Do You Plan? ................................................................................................................................77

Developing the Project Management Plan ............................................................................................78

Components of the Project Management Plan ......................................................................................79

Project Scope .........................................................................................................................................80

Project Scope Statement ........................................................................................................................81

Project Deliverables ..............................................................................................................................82

Exclusions .............................................................................................................................................84

Constraints .............................................................................................................................................85

Assumptions ..........................................................................................................................................86

Approach ...............................................................................................................................................87

Plan Procurement Management .............................................................................................................88

Characteristics of an Effective Project Plan ..........................................................................................90

The Investment of Planning ..................................................................................................................91


Module 6 Decomposition Using a Work Breakdown Structure .......................................................... 93

Project Decomposition .........................................................................................................................94

Benefits of Decomposition ....................................................................................................................95

Decomposition Using a Work Breakdown Structure ............................................................................96

Benefits of the Work Breakdown Structure ...........................................................................................97

Work Breakdown Structure Hierarchy ..................................................................................................98

Work Breakdown Structure Format .......................................................................................................99

Work Package ......................................................................................................................................100

Work Breakdown Structure Template .................................................................................................101

Work Breakdown Structure Graphic Conventions ..............................................................................102

Work Breakdown Structure Diagramming Rules ................................................................................103

Demonstration: Work Breakdown Structure .......................................................................................104

Work Breakdown Structure List Conventions .....................................................................................105

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Table of Contents


Work Breakdown Structure Dictionary ...............................................................................................106

Activity Definition ...............................................................................................................................107

Activities .............................................................................................................................................108

Skills Matrix ........................................................................................................................................109

Scope Baseline ....................................................................................................................................109

Key Learning Points ............................................................................................................................110

Module 7 Estimating .......................................................................................................................... 111

Estimating Accuracy ............................................................................................................................112

Effort, Duration, and Cost ...................................................................................................................114

Effort vs. Duration ...............................................................................................................................115

Methods for Estimating Effort .............................................................................................................116

Weighted Average ................................................................................................................................117

Expert Judgment, Delphi, and Parametric Estimating ........................................................................118

Analogous and Computerized Tools ...................................................................................................119

Analogous Estimating ...................................................................................................................119

Computerized Tools ......................................................................................................................119

Function Point Estimating ...................................................................................................................120

Function Point Analysis ...............................................................................................................120

Estimating Variables ............................................................................................................................121

Estimating Cost ...................................................................................................................................122

Cost Budgeting ....................................................................................................................................123

Cost Baseline .......................................................................................................................................124


Module 8 Sequencing and Scheduling .............................................................................................. 127

Sequencing and Scheduling .................................................................................................................128

Determining Sequence and Schedule ..................................................................................................129

Project Schedule Network Diagram ....................................................................................................130

Precedence Diagramming Method (PDM) ..........................................................................................131

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Precedence Diagramming .............................................................................................................131

Dependencies .......................................................................................................................................132

Milestones ...........................................................................................................................................133

Producing the Network Diagram .........................................................................................................134

Precedence Logic ................................................................................................................................135

Estimating Activity Resources ............................................................................................................137

Estimating Activity Duration ...............................................................................................................138

Lag .......................................................................................................................................................139

Lead .....................................................................................................................................................140

Apply the Calendar ..............................................................................................................................141

Critical Path Method ...........................................................................................................................142

Critical Path .........................................................................................................................................144

Determine the Critical Path — Forward Pass .....................................................................................145

Calculating Float — Backward Pass ...................................................................................................146

Gantt and Bar Charts ...........................................................................................................................148

Time/Cost Trade-Off ...........................................................................................................................149


Module 9 Organizing and Acquiring Staff ........................................................................................ 151

Resource Planning ...............................................................................................................................152

Acquire the Project Team ....................................................................................................................153

Responsibility Assignment Matrix ......................................................................................................155

Constraints ...........................................................................................................................................157

Resource Histograms ...........................................................................................................................158

Resource Leveling ...............................................................................................................................159

Develop the Project Team ...................................................................................................................160

Team Website ......................................................................................................................................161


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Module 10 Control Plans ..................................................................................................................... 163

Planning for Control ............................................................................................................................164

Quality Management Plan ...................................................................................................................165

Quality Planning ..................................................................................................................................166

Quality Assurance ................................................................................................................................167

Quality Control ....................................................................................................................................168

Communications Management Plan ....................................................................................................169

Developing the Communication Plan ..................................................................................................170

Examples of Communication Plans ....................................................................................................171

Change Control ....................................................................................................................................172

Reasons for Change .............................................................................................................................173

A Typical Change Control Procedure ..................................................................................................174

Example of a Change Request Form ...................................................................................................175


Module 11 Risk Management .............................................................................................................. 179

Risk Management ................................................................................................................................180

What is Risk? .......................................................................................................................................181

Elements of Risk Management ...........................................................................................................182

Risk Management Planning .................................................................................................................183

Risk Identification ...............................................................................................................................184

Qualitative Risk Analysis ....................................................................................................................185

Quantitative Risk Analysis ..................................................................................................................187

Risk Response Planning ......................................................................................................................189

Responses for Negative Risk; i.e. Threats ....................................................................................189

Responses for Positive Risk; i.e Opportunities .............................................................................190

The Risk Register ................................................................................................................................191

Contingencies and Reserves ................................................................................................................192

Risk Management Method ..................................................................................................................193

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Risk Management Worksheet ..............................................................................................................194


Module 12 Executing the Project......................................................................................................... 197

Project Execution ................................................................................................................................199

Guidelines for Executing a Project Phase ...........................................................................................200

Tools and Techniques for Executing the Project Plan .........................................................................201

Project Kickoff ....................................................................................................................................202

Work Results .......................................................................................................................................203

Tracking Progress via Status Reports ..................................................................................................204

Assessing Project Status via Status Meetings .....................................................................................205

Pitfalls of Project Execution ................................................................................................................206


Module 13 Monitoring and Controlling the Project ........................................................................... 209

Project Control ....................................................................................................................................211

Key Control Activities .........................................................................................................................212

Planning Versus Monitoring and Controlling ..............................................................................212

Prerequisites for Effective Monitoring and Controlling ......................................................................213

Performance Monitoring and Reporting ..............................................................................................214

Performance Reports ...........................................................................................................................215

Current State Report ............................................................................................................................216

Original Baseline Report .....................................................................................................................217

Trend Report ........................................................................................................................................218

Narrative Overview Report .................................................................................................................219

Trend Analysis .....................................................................................................................................220

Interpreting Trends ..............................................................................................................................221

Example of Trend Analysis .................................................................................................................222

Questions to Ask Yourself ...................................................................................................................223

Taking Corrective Action ....................................................................................................................224

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To Control Quality ........................................................................................................................224

To Shorten the Project Duration (Time) .......................................................................................225

To Reduce Costs ...........................................................................................................................225

To Accommodate Increasing Scope ..............................................................................................226

To Monitor Risks .................................................................................................................................227

Tracking and Logging Changes ...........................................................................................................228

Requested Modifications ...............................................................................................................228

Corrective Actions ........................................................................................................................228

Example Change Log Report ..............................................................................................................229

Guidelines for Monitoring and Controlling a Project Phase ...............................................................230

Pitfalls to Project Control ....................................................................................................................231


Module 14 Closing the Project ............................................................................................................. 233

Closing .................................................................................................................................................235

Administrative Closure Activities ......................................................................................................236

Lessons Learned ..................................................................................................................................237

Example Closeout Report ....................................................................................................................238


Module 15 Summary and Conclusion ................................................................................................. 241

Summary and Conclusions ..................................................................................................................242

Summary — Critical Success Factors .................................................................................................243

Summary — Project Management Functions .....................................................................................244

Conclusion ...........................................................................................................................................245

Appendix A Recommended Reading ..................................................................................................... 247

Appendix B Glossary .............................................................................................................................. 253

Appendix C Index ................................................................................................................................... 263

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Exercises ............................................................................................................................................ 271

EXERCISE 1 .......................................................................................................................................271

EXERCISE 2 .......................................................................................................................................273

EXERCISE 3 .......................................................................................................................................291

EXERCISE 4 .......................................................................................................................................299

EXERCISE 5 .......................................................................................................................................307

EXERCISE 6 .......................................................................................................................................311

EXERCISE 7 .......................................................................................................................................313

EXERCISE 8 .......................................................................................................................................315

EXERCISE 9 .......................................................................................................................................317

EXERCISE 10 .....................................................................................................................................321

EXERCISE 11 .....................................................................................................................................325

EXERCISE 12 .....................................................................................................................................329

EXERCISE 13 .....................................................................................................................................335

EXERCISE 14 .....................................................................................................................................351

Module 1 | 1


Module 1 Introduction

2 | Module 1

Introduction


Welcome to Fast Start® in Project Management!

This workshop is designed to help you achieve greater success in your work, regardless of whether you:

• Know a lot about project management

• Are responsible for managing some kind of project or projects

• Want your project(s) to achieve high-quality results, on-time and within budget

• Are a specialist contributing to one or more projects

• Know very little about project management

• Want to work through the University of Colorado at Denver’s Certificate Program in Project Management or other professional programs

• Want to begin preparing for certification as a Project Management Professional (PMP)® through the Project Management Institute (PMI)®*

In any case, you are sure to find this workshop of value

* PMI and PMP are registered marks of the Project Management Institute, Inc.

Module 1 | 3

Introduction


Workshop Logistics

Use the table below to record the logistics for your particular workshop.

Instructor

Instructor’s e-mail

Start/end times

Lunch (approximate)

Breaks

Facilities

4 | Module 1

Introduction


Workshop Materials

As part of this workshop, you will receive the following:

• Workshop manual

• Case studies and solutions

• Appendices to the workshop manual

• Recommended reading

• Glossary

• Index

• Process Table

Module 1 | 5

Introduction


How to Get the Most Out of This Workshop

Generally, what people get from any workshop is directly related to what they put in. To help you maximize the value you derive from Fast Start® in Project Management you should consider doing the following:

• Keep an open mind

• Respect others’ views

• Participate

• Ask questions any time

• Put aside other work and problems

• Turn cell phones and pagers to silent

• Avoid outside interruptions

• Dress comfortably

• Have fun!

6 | Module 1

Introduction


Workshop Objectives

Fast Start® in Project Management has been designed to help you accomplish a great deal in a short period of time.

By the end of this workshop, you will be able to:

• Apply the project management process

• Identify key tools and techniques available to Project Managers and their teams

• Practice using those tools in a case study

• Discuss and explore ideas, concerns, and issues related to project management

• Identify areas within your own organization that could benefit from applying professional project management principles

Module 1 | 7

Introduction


Workshop Contents

Day One

Module 1 IntroductionModule 2 Project Management Concepts Module 3 The People Side of Project ManagementModule 4 Initiating the ProjectModule 5 Planning the Project

Day Two

Module 6 Decomposing Using a Work Breakdown StructureModule 7 EstimatingModule 8 Sequencing and Scheduling

Day Three

Module 9 Organizing and Acquiring StaffModule 10 Control PlansModule 11 Risk ManagementModule 12 Executing the ProjectModule 13 Monitoring and Controlling the ProjectModule 14 Closing the ProjectModule 15 Summary and Conclusion

Using a case study format, you will have a chance to explore most of these topics in depth. You and your teammates will experience most of the project processes and actually apply the tools and techniques introduced throughout the workshop to the case study. As a result, you will leave the workshop better equipped to practice more effective project management in your job.

8 | Module 1

Introduction


PMBOK® Guide

All definitions and processes included in this workshop are consistent with the Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide). This workshop will also help you understand the ten Project Management Knowledge Areas defined by the Project Management Institute (PMI)®.

The knowledge areas are:

• Project Integration Management – Ensuring that the various elements of the project are properly coordinated.

• Project Scope Management – Ensuring that the project includes all the work required, and only the work required, to complete the project successfully.

• Project Time Management – Ensuring timely completion of the project.

• Project Schedule Management – Ensuring that the project is completed within the approved budget.

• Project Quality Management – Ensuring that the project will satisfy the needs for which it was undertaken.

• Project Resource Management – Making the most effective use of the people involved with the project.

• Project Communications Management – Ensuring timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information.

• Project Risk Management – Identifying, analyzing, and responding to project risk.

• Project Procurement Management – Identifying which project needs can be best met by procuring products or services outside the project organization.

• Project Stakeholder Management – Includes the processes required to identify all people or organizations impacted by the project, analyzing stakeholder expectations and impact on the project, and developing appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

PMBOK is a registered mark of the Project Management Institute, Inc.

Module 4 | 57


Module 4 Initiating the Project

58 | Module 4

Initiating the Project


Executing Processes

Planning ProcessesClosingProcesses

Mon

itoring & Controlling Processes

InitiatingProcesses

□ Develop Project Charter

□ Identify Stakeholders

Module 4 | 59



Project Initiation

Initiating the project means gaining authorization from the organization to begin a project or a project phase. This involves obtaining commitment, particularly in the form of resources, budget, etc. Generally, it is the project sponsor or one of the customers who provides the funds. Thus, it is this person who gives authorization – the “green light” – for the project to go forward. Until a project manager has this authorization, he or she should be hesitant to begin work on the project.

Initiating Processes:

Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.

New projects can come from either an internal or an external source. A prospective idea for a new project can come from an internal source and be documented in a business case. From outside the organization, the new project can come via a procurement document, such as a request for proposal. In this latter instance, the award of a contract initiates the project, but the organization involved must still decide whether or not to bid on the work.

Initiating a project involves demonstrating the business needs that drive the project and proving that the chosen project solution and its approaches are feasible. An organization’s project lifecycle may determine whether a needs and feasibility analysis is considered to be a first phase of a project or whether that analysis is treated as a project on its own. The project management team then creates a project charter and a preliminary project scope statement.

A project manager may or may not be asked to participate in the initiation of a project. However, it is best to have the project manager involved in project efforts as early in the life of the project as possible.

In this module, we will address business needs, feasibility, and project charters. The preliminary project scope statement follows the same format as that of the project scope statement and will be addressed in the planning module.

60 | Module 4



Defining Need

In some organizations a project is not formally initiated until after a needs assessment, feasibility study, and preliminary plan have been completed. In many companies a business case or similar document describes the necessary information from a business standpoint to determine whether or not the project is worth the investment. Some types of projects, such as internal service projects, may be initiated more informally with more limited background research and documentation.

No matter how formally or informally projects are initiated, they are typically triggered by problems, opportunities, or business requirements such as:

• Market demand

• Organizational need

• Customer request

• Technological advance

• Legal or regulatory requirement

• Ecological impacts

• Social need

Defining need answers the question, “Why do it?”

In order to obtain organizational commitment to the project, the person initiating the project must be able to demonstrate to the sponsor and other key stakeholders that a business need exists for the project and that the project is feasible. In this way, the project is linked to ongoing work, problems, opportunities, or business requirements in the organization, and it is properly aligned with the short- and long-term goals of the organization.

If initiation is underway or is already complete before the project manager is assigned, the project manager should review all of the initiation information to ensure that everything has been done and the project background is complete and accurate.

Module 4 | 61



Defining Feasibility

In addition to defining need, the project initiator must show that the organization has the capability to achieve the desired project outcomes. Defining feasibility answers the question, “What makes us think we can do this?”

A feasibility study may analyze many different facets of a project. A feasibility study determines the probability of success or failure of the project or of the project’s various approaches.

The feasibility study may look at the following selection criteria:

• The project’s alignment with the organization’s strategic plan

• Financial return on investment (cost/benefit analysis)

• The project’s projected costs in terms of staffing, technology, travel, etc.

• Project loss or gain of market share

• Public perception

• Ongoing costs of maintenance, support, staffing, etc.

• Historical information of previous projects (i.e., proven track records)

• Availability of staffing, technology, equipment, funds, etc.

• Risk analysis

• If it is a project already in progress, performance of prior phases of the project

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Demonstrating Need and Feasibility

To prepare to demonstrate need and feasibility of a project to an organization’s decision makers, a project initiator typically:

• Assesses the political climate in the organization to detect supporting or conflicting goals.

• Networks with stakeholders to identify key influencers and decision makers and begins to build a climate of acceptance for the project.

• Makes presentations to various stakeholders and tailors those presentations to appeal to key needs.

• Provides supporting data, in the form of cost-benefit-risk analysis, simulations, or other models.

Project initiators need not carry out these activities alone. In fact, assembling a group of people who support the project goals and who will help promote it can be invaluable. The earlier a core group of supporters can be defined, the easier it will be to obtain formal organizational commitment.

It’s also important not to assume that all stakeholders already see the need for the project and agree that it is feasible. More likely, stakeholders will each have different views and assumptions about the project need. It is the project initiator’s responsibility to provide enough detail to build a consensus about need and feasibility. As a measure of this consensus, the project initiator should put agreements with stakeholders in writing. This provides documentation that, at least initially, all stakeholders agree that the project is needed and is feasible.

It is possible that, after defining need and feasibility, the project initiator may determine that the project should not move forward. In this case, the project initiator can submit a recommendation that the project not be initiated.

Module 4 | 63



Project Stakeholder Management

Stakeholder:

An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

Project Stakeholder Management includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution. Stakeholder management also focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities. Stakeholder satisfaction should be managed as a key project objective. The key elements include:

Identify Stakeholders

Identifying stakeholders is the process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project, analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success. The key benefit of this process is that it allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders. It is critical that this identification takes place early in the project, and the initial assessment should be reviewed periodically throughout the project to detect any potential changes.

Stakeholders will always include:

• A project manager• Project team members• A sponsor• Clients, customers, and/or end users

Depending on the project, stakeholders may also include:

• Vendors• Suppliers• Internal and external consultants• Custodians of required resources• Managers and executives of affected areas

64 | Module 4



Stakeholder Analysis

An important technique used in this process is stakeholder analysis. Besides identifying the stakeholders, the analysis involves systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be managed during the project. The analysis is used to determine interests, expectations, and influence of the stakeholders with regard to the project. It also helps identify stakeholder relationships with the project and other stakeholders for leverage in building coalitions and potential partnerships which will improve the probability of project success. The analysis may also indicate how the management of these interests should vary over the various phases of the project life cycle.

The information gathered during stakeholder analysis is recorded in a document called the stakeholder register. This register should be periodically reviewed throughout the project, since stakeholders may change or new ones may be identified.

Plan Stakeholder Engagement

Planning stakeholder engagement is the process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success. The key benefit of this process is that it provides a clear, actionable plan to interact with project stakeholders to support the project’s interests.

A main goal is to determine the current engagement level of a stakeholder and compare it against the engagement level necessary for the project to be successful. Current engagement levels can vary as shown below:

• Unaware — Unaware of project or its potential impacts.

• Resistance — Aware of project and its potential impacts and resistant to change.

• Neutral — Aware of project yet neither supportive nor resistant.

• Supportive — Aware of project and potential impacts and supportive to change.

• Leading — Aware of project and potential impacts and actively engaged in ensuring the project is successful.

The main output is a stakeholder management plan that identifies the management strategies required to effectively engage the stakeholders. Project managers should be aware of the sensitive nature of this plan’s contents and take appropriate precautions to limit distribution.

Module 4 | 65



Manage Stakeholder Engagement

Managing stakeholder engagement is the process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle. The key benefit of this process is that it allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success.

Managing stakeholder engagement includes:

• Engaging stakeholders at appropriate stages of the project to obtain or confirm their continued commitment to the success of the project.

• Managing stakeholder expectations through negotiation and communication, ensuring project goals are achieved.

• Addressing potential concerns that have not yet become issues and anticipating future problems that may be raised by stakeholders. These concerns should be addressed as early as possible.

• Clarifying and resolving issues that have been identified.

Monitor Stakeholder Engagement

Controlling stakeholder engagement is the process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders. The key benefit of this process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes.

66 | Module 4



Project Charter

The project charter is created by the initiator or the project management team based on contracts, Statements of Work (SOW), business needs and feasibility analysis, and other information. The charter is then authorized by a manager external to the project, usually the project sponsor. It is particularly helpful if that manager is at a high enough level to be able to authorize the resources needed by the project.

Project Charter:

A document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the

authority to apply organizational resources to project activities.

Organizations tend to vary in the characteristics and content of the project charters. This is due to the various “hot buttons” that are unique to each organization.

According to the “Guide to the Project Management Body of Knowledge”, a typical charter documents the business needs, assumptions, constraints, current understanding of the customer’s needs, and the new product, service, or result that it is intended to satisfy, such as:

• High-level project description

• Project purpose or justification

• Measurable project objectives and related success criteria

• High-level requirements

• Assumptions and constraints

• High-level risks

• Summary milestone schedule

• Summary budget

• Stakeholder List

• Project approval requirements (what constitutes project success, who decides the project is successful, and who signs-off on the project)

• Assigned project manager, responsibility and authority level

• Name and authority of the sponsor or other person(s) authorizing the project charter

Module 4 | 67



Project Description

At this point in the initiation process, it is time to put some high-level boundaries around the project by describing the product, service, or result to be created by the project.

Project Description:

The characteristics of the project, service, or result that the project was undertaken to create..

Do not attempt to describe beyond that which is reasonably known at this point in the project. The project description will be created here at a high level but can become more descriptive as the project moves through the planning phase.

The project description should demonstrate a strong connection to the business need and may describe why this solution was determined to be more feasible than others. Remember that the goal of any project is to satisfy the business need. Keeping this connection throughout the project will help ensure that the end results are valid.

68 | Module 4



Project Purpose

Project Purpose:

A short description of why the project is being performed. What will the project enable to be accomplished or achieved?

The project purpose or justification can be a succinct statement or it can also be a list of benefits to be gained. Benefits are closely related to the project justification; they describe the value to be gained as result of the project accomplishments.

Benefits may include:

• Increased revenue

• Reduced costs

• Reduced time to market

• Improved quality or performance

• Improved image of the company, its products, or its services

• Corrected problem

• Enhanced flexibility

• Greater competitive responsiveness

Often the project benefits are outcomes over which the project manager does not have direct control. For example, a project may have the potential to enhance profitability. Even if the project achieves its objectives, the organization’s profits may decline due to complex business factors beyond the scope and control of the project.

Module 4 | 69



Project Objectives

Understanding the project objectives is central to defining the scope of the project. Objectives quantify how well the business needs are met in terms of cost, schedule, quality, and scope.

Project Objectives:

The quantifiable criteria that must be met for the project to be considered successful.

Project objectives relate to the business needs or goals of the project. When the objectives have been achieved, the project goal(s) will have been accomplished and the project scope will have been satisfied.

Project objectives must include metrics, especially cost, schedule, and quality measures. To simply have produced something is not enough. It must be produced within a certain time frame, within a certain budget, and to an acceptable level of quality. Therefore, it is helpful for each of the attributes of time, cost, and quality to have a yardstick (e.g., U.S. dollars) and an absolute or relative value ($1.0 million ± 5%, for example).

One way to ensure that metrics are adequate is to use the SMART criteria:

Specific

Measurable

Agreed upon

Realistic

Time-framed

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Some example objectives and their measurements are provided below:

• Reduce the number of hours to process an individual life insurance claim from an average of 50 hours to an average of 20 hours within three months after the system has been implemented. The baseline measurement of a 50-hour average has been taken during initiation. Comparative measurement will be taken at three months after implementation.

• Ensure that 80% of all eligible employees are enrolled in benefits by October 1st of the current year. Ensure that 99% of all eligible employees are enrolled in benefits for next year by the insurance company’s deadline of November 15th of the current year. To measure enrollment, reports of enrollment and non-enrollment will be generated on October 1st, November 14th, and November 15th of the current year.

• Deliver the project within +/– $15,000 of the original budget of $230,000. Measurement will be taken by tracking expenditures in Excel and comparing them against the original budget.

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Project Requirements

Project requirements are defined by carefully examining stakeholder needs, wants, and expectations. These requirements are conditions or capabilities that must be met or possessed by the deliverables of the project.

Project Requirements:

Conditions or capabilities that must be met or possessed by the deliverables of the project.

Requirements will generally have less detail during the Initiation process group when the preliminary project and scope statement are being defined. More detailed requirements will be developed as the project and product are progressively defined. Some requirements may be optional, but others may be mandated by law or by contract.

While the look and feel of requirements may vary amongst organizations, they should always contain enough information to support project planning.

For more detailed information on how to gather both project and product requirements, refer to Systemation’s Business Analysis program.

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Triangle Flexibility

In planning for and controlling a project, it is important to know the flexibility, or priority, of each side of the project triangle: time, cost, and scope. Do not assume that all stakeholders have the same view. The sponsor may think cost is the least flexible and the user, scope. If there is not agreement up front, the planning process could take longer, and incorrect decisions could be made while the project is underway.

Triangle Flexibility:

The flexibility ranking of each side of the project triangle (scope, time, and cost) from least flexible to most flexible.

The project’s environment dictates which side is least flexible and which is most flexible. Many items influence their flexibility.

These items may include:

• Time-to-market requirements

• Budget availability

• Governmental regulations

• Business needs

• Competitive capabilities

Flexibility ranking can change once the project is underway. The project might have started with scope being the least flexible and time the most flexible. Two-thirds of the way through the project, the project budget might be slashed, causing cost to become the least flexible side of the project triangle. The project manager will then have to manage the project based on the new expectations.

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Key Learning Points

• Initiating involves gaining authorization to begin a project (or phase) by demonstrating need and feasibility.

• A project charter formally recognizes the existence of a project and commits organizational resources.

• Stakeholders include individuals and organizations that have an interest in, or can be affected by, the project.

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Notes


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Module 5 Planning the Project

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Planning the Project


□ Develop Project Management Plan

□ Plan Scope Management

□ Define Scope

□ Create WBS

□ Plan Schedule Management

□ Define Activities

□ Sequence Activities

□ Estimate Activity Resources

□ Estimate Activity Durations

□ Develop Schedule

□ Plan Cost Management

□ Estimate Costs

□ Determine Budget

□ Plan Quality Management

□ Plan Resource Management

□ Plan Communications Management

□ Plan Risk Management

□ Identify Risks

□ Perform Qualitative Risk Analysis

□ Perform Quantitative Risk Analysis

□ Plan Risk Responses

□ Plan Procurement Management

□ Plan Stakeholder Engagement

Executing Processes

Planning ProcessesInitiatingProcesses

ClosingProcesses

Mon

itoring & Controlling Processes

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Why Do You Plan?

One of the most important activities on any project is planning. Recall that a project is designed to produce something unique; in other words, the project represents something that has never been done before. Therefore, all projects involve some degree of risk. Planning is an essential strategy for managing and minimizing that risk.

Planning has many benefits. A good plan helps the project manager:

• Understand the project

• Understand the requirements

• Maintain appropriate focus

• Develop a baseline for measuring progress

• Manage expectations

• Manage quality

• Manage and respond effectively to change

• Avoid disaster

• Measure success

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Developing the Project Management Plan

Project Management Plan:

The document that describes how the project will be executed, monitored, and controlled.

By developing the project management plan, the project manager thinks through, documents, and communicates to stakeholders what the project will accomplish and how that work will get done. The project management plan describes how the project will be executed, monitored, controlled, and closed.

The contents of the project management plan will depend upon the needs of the organization and of the project. In this workshop, we will address all of the planning processes and components. However, not all projects will require all of the components and some projects may require lesser or greater depth in the components that we will discuss.

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Components of the Project Management Plan

These components help to identify “what” it is you are going to do. Note that many organizations include some or all of these items in the project charter document.

• A project charter (created in initiation)

• A project scope statement (preliminary project scope statement may have been created in initiation)

These components help to identify “how” you are going to do it:

• Project approach

• A work breakdown structure (WBS) that decomposes the project into a hierarchical diagram

• Estimates of activity times and costs

• Sequence of activities required to achieve the objectives

• A project schedule

• Key milestones

• Identification of required resources (people, equipment, etc.)

• Subsidiary management plans for scope, requirements, schedule, cost, quality, process improvement, resources, change, communication, risk, procurement, and stakeholders

• Analysis of key risks to the project

• Baseline for scope, schedule, and cost

• Key management reviews

Planning consists of many processes and results in many components. However, this does not mean that project management is primarily planning. Keep in mind that the amount of planning should align with the scope and needs of the project. In other words, more complex projects require more depth and breadth of planning than do simple and straightforward projects.

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Project Scope

A clear definition of project scope provides a foundation for confirming and developing common understanding of the project among stakeholders. Scope is also the basis for making future decisions concerning the project. As the project progresses, the scope may need to be refined as changes to the project are approved.

The project manager must be aware of two types of scope: product scope and project scope.

Product scope is defined as “the features and functions that characterize a product, service, or result.” The processes, tools, and techniques used to define and manage product scope vary by application and are usually defined within a project lifecycle.

In this workshop we will focus on the processes, tools, and techniques used to define and manage project scope. Project scope is the work that must be done to deliver a product, service, or result with the specified features and functions. Scope planning identifies how the project scope will be defined, verified, and controlled and how the work breakdown structure will be created and defined.

Project Scope:

The work performed to deliver a product, service, or result with the specified features and functions.

The project manager must manage both project scope and product scope to ensure a successful project. The project manager will measure project scope against the project plan; product scope will be measured against the requirements.

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Project Scope Statement

Project scope is defined by a scope statement, which makes clear the boundaries of the project. This statement specifies what the project will provide and contains criteria that allow the project manager and other stakeholders to identify whether a project or project phase has been completed successfully. Project teams may develop multiple scope statements that define the levels or components of work to be done by sub-teams on a particular project.

At a minimum, the project scope statement includes:

• Product scope description — Progressively elaborates the characteristics of the product, service or result described in the project charter and requirements documentation. This description specifies sufficient detail to bound scope of the project. It will get into details of features and functions that characterize the product, service or result.

• Product acceptance criteria — Defines the process and criteria for accepting completed products, services, or results. What must be completed or proven before the customer/user accepts that the project is finished. Defining this information during planning manages expectations and prevents surprises later during the execution of the project.

• Project deliverables — Deliverables include both the outputs that comprise the product or service of the project, as well as ancillary results, such as project management reports and documentation.

• Project exclusions — Generally identifies what is excluded from the project. Explicitly stating what is out of scope for the project helps to manage stakeholders’ expectations.

• Project constraints — Lists and describes the specific project constraints associated with the project scope that limits the team’s options. Examples might be a set budget or a mandated completion date.

• Project assumptions — Lists and describes the specific project assumptions associated with the project scope and the potential impact of those assumptions if they prove to be false.

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Project Deliverables

To satisfy each project objective, one or more deliverables must be produced. Deliverables are the products, or outputs, of the project itself.

Project Deliverable:

Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

The term “deliverable” is often used in a narrow sense to refer to those deliverables subject to approval by the sponsor or customers. However, deliverables also include project life cycle or methodology deliverables (such as requirements documents) and project management deliverables (such as status reports and budgets).

We can distinguish between three forms of deliverables:

• Interim deliverables — those elements that must be produced during the project in order to enable the creation or production of final outcomes.

• Final deliverables — those elements associated with interim outputs that are delivered to someone, usually the sponsor or customer. (Final deliverables are synonymous with external deliverables.)

• Project management deliverables — those elements associated with the process of managing and communications about the project.

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Examples of interim deliverables may include:

• Design documents

• Requirements documents

Examples of final deliverables may include:

• Products (code, a manual, or an online tutorial)

• Services (electronic bill paying)

• Results (product selection or research results)

• Reports (“Disaster Recovery Plan” document)

• Training (a self-paced Microsoft® Project workshop on CD-ROM)

• Documentation (user guide for a new software package)

• Warranty/support (90-day on-site technical support)

Examples of project management deliverables may include:

• Status reports

• Performance reports

• Budget

• Closeout project summary report

As you can see, deliverables need to be tangible. They allow project stakeholders to agree that project objectives have been or will be met through tangible products.

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Exclusions

Exclusions:

Products, services, or processes that are not specifically a part of the project.

In theory, anything not explicitly included in the project deliverables is implicitly excluded from the project.

In practice, however, various stakeholders have differing ideas and assumptions about what the product will and will not produce. When project managers fail to clarify and obtain formal agreement about project exclusions, misunderstandings often result, and misunderstandings are the primary cause of conflict.

Therefore, it is very important for project managers to state explicitly what will not be included in the project.

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Constraints

Various parameters and boundary conditions will exist for virtually every project. The organization, the sponsor, and/or the customers often set constraints.

Constraint:

A limiting factor that affects the execution of a project, program, portfolio, or process.

Constraints may include the following:

• Predefined budgets

• Predefined schedules (deadlines)

• Limited resources

• Technology limitations

• Geographic concerns

• Operational procedures or processes

• Political and/or cultural factors

• Legal or contractual obligations

Constraints represent factors that project teams must account for as they develop their solution for providing project deliverables. If not handled effectively, constraints may translate into project risks.

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Assumptions

It is impossible for project managers and project team members to know all relevant information at the start of any project. In fact, customers, sponsors, and other key stakeholders rarely have all the information desired. Therefore, project managers must identify and make certain assumptions.

Assumption:

A factor in the planning process that is considered to be true, real, or certain, without proof or demonstration.

Assumptions must be made when information is absent:

• It is imperative that they be clearly and explicitly documented.

• They should be communicated to all parties.

• Most key stakeholders should agree on them.

Assumptions often form the bases for later changes to the project plan. It is important to track and revisit them, for they are often validated or refuted as the project progresses and more detailed information becomes available.

Examples:

• All resources will be made available per project plan.

• Internal subject matter experts (SMEs) are available to populate the content.

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Approach

Even while project planning is underway, project managers should begin thinking about the general strategies that can be used to achieve project objectives and produce the project deliverables. This broad, high-level strategy is called the project approach.

Approach:

A description of the project management strategies or summary of other management plans for achieving project objectives and deliverables.

Various decision models can be used to compare approaches to the project. Decisions can then be made as to which approaches offer the greatest potential benefits. Regardless of the approach chosen, it must be stated clearly enough that the sponsor can understand it and provide his or her approval.

Project approaches define broadly the means by which the deliverables might be created.

Factors to consider include:

• What can be done to help achieve project objectives?

• What tools and techniques are available?

• Which tools and techniques seem best suited to the needs of this particular project?

Examples:

• All graphics will be outsourced to ABC Graphics Company.

• Project will be managed in accordance with KnowHow™ Methodology.

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Plan Procurement Management

Some approaches may include outsourcing work or acquiring products or services from a supplier. Once the project team has identified the scope of the project, created a preliminary WBS, created high-level estimates of work and cost, and analyzed the project’s risks, it is time to begin planning for any procurement.

Plan Procurement Management:

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

The team may use a make-or-buy analysis or expert judgment to help them decide how to plan possible purchases and acquisitions.

Working with outside resources requires some degree of experience, as there may be legal issues, financial difficulties, and disagreements over the quality of their work processes and/or deliverables. Novice project managers should get assistance from a more experienced project manager, supervisor, peer, or professional contact who has worked with outside resources.

The output of this effort normally includes the following items:• Procurement management plan — A component of the project or program management

plans that describes how a project team will acquire goods and services from outside the performing organization.

• Procurement statement of work — Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

• Make-or-buy decisions — Decisions made regarding the external purchase or internal manufacture of a product.

• Procurement documents — The documents utilized in bid and proposal activities, which include the buyer’s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal and seller’s responses.

• Source selection criteria — A set of attributes desired by the buyer which a seller is required to meet or exceed to be selected for the contract.

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If the team decides to procure outside resources, products, or services, they will plan how the relationship will be managed. In any relationship involving outside resources, there is a buyer (usually the internal project team) and a seller (generally a vendor, contractor, or supplier). Buyer/seller relationships may exist on many levels throughout the project, and each will involve the development of a contract.

Contract:

A mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.

Contracts can take several forms:

• Fixed-priced or lump-sum contracts Involves a fixed, total price for a well-defined product.

• Cost-reimbursable contracts Involves payment to the seller for the seller’s actual costs plus a fee for the seller’s profit.

• Time-and-material contracts A hybrid between fixed-price and cost-reimbursable contracts. Like cost-reimbursable contracts, time-and-material contracts are open-ended. However, fixed rates can be associated with the contract as in fixed price contracts.

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Characteristics of an Effective Project Plan

The project plan is a formal, approved document that can be used to manage and control project execution. It should be distributed in accordance with any communication management plans.

The plan must document project planning assumptions and be detailed enough to guide the execution of the project.

In addition, a good project plan will be…

• Easy to understand

• Easy to read

• Communicated to all participants (key stakeholders)

• Appropriate to the project’s size, complexity, and criticality

• Prepared by the team, rather than the individual project manager

A key challenge in achieving project success is earning consensus and buy-in from all key stakeholders. By including these stakeholders in project plan development, the project manager allows them to have ownership of the plan. This often translates into greater commitment, which, in turn, results in enhanced motivation and productivity.

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The Investment of Planning

Novice project managers are often eager to “get going” on their projects. From their perspective, extensive planning is wasted time – time that interferes with and unnecessarily delays progress on the project.

In addition, some organizations have neither the culture nor the structure to support project planning. In such organizations, visible and tangible results are rewarded more highly than thoughtful, planned efforts.

These beliefs overlook an important fact: A direct correlation exists between the quality of a project plan and the quality of execution of the project. The Standish Group (*http://www.standishgroup.com) and IEEE (the Institute of Electronics and Electrical Engineers) (*http://www.ieee.org) have attempted to quantify the benefits of planning.

Use the chart below to record the investment and benefits of planning.

(Your facilitator will develop this chart during the workshop.)

*These web sites are current at the time of publication.

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Key Learning Points

• A project plan includes components detailing what you are going to do and how you aregoing to do it.

• Planning helps everyone to better understand the project requirements and to maintainfocus.

• A baseline serves as a measurement for progress and change.

• The project scope includes the work that must be done to deliver the product or service.

• The measurable outcomes from a project are known as deliverables.

• Exclusions help to clarify those products, services, or processes that are not part ofthe project.

• The approach describes the project management strategy for achieving the projectobjectives and deliverables.

• In plan procurements, the team determines the work that will be done by the project teamand the work that will be allocated to a seller.

• An effective plan is created by the team, is easy to understand, and is appropriate to thescope and complexity of the project.

• One hour of planning can later save several hours of corrective activity.

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